China Fines BAIC, Hyundai JV for Breach of Antitrust Rules
Liao Shumin
DATE:  Oct 17 2019
/ SOURCE:  yicai
China Fines BAIC, Hyundai JV for Breach of Antitrust Rules China Fines BAIC, Hyundai JV for Breach of Antitrust Rules

(Yicai Global) Oct. 16 -- Chinese regulators have fined the shareholders of a new joint venture, including one of the country's largest carmakers BAIC Motor and the China investment arm of South Korea's Hyundai Motor, CNY900,000 (USD126,780) for violating anti-monopoly regulations.

Beijing-based BAIC, Hyundai Motor Group China and Hyundai Capital Services, a provider of consumer financial services, set up Beijing Hyundai Leasing last December to run an auto financing and hiring business.

Regulations state that all groups of business operators with a global annual operating income over CNY10 billion (USD1.4 billion) or a domestic annual operating income over CNY2 billion (USD281.6 million) in the past year must declare their combined income to the regulators.

The JV, whose income hits the quota threshold, failed to do so before obtaining its business license, the State Anti-Monopoly Regulation Bureau said in a statement on its website. Its shareholders will be fined CNY300,000 each. After evaluation, the watchdog determined that the JV will not have much impact on market competition, it added.

BAIC owns half of the JV while Seoul-based Hyundai Capital has 40 percent and Beijing-based Hyundai Motor Group China holds the rest. With a registered capital of CNY300 million (USD42.2 million), the JV received its business license on Jan. 29.

Last year, BAIC Motors had turnover of more than CNY150 billion (USD21 billion) and Hyundai Motor sold almost 800,000 cars in China.

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Keywords:   BAIC Motor,Hyundai Capital Services,Hyundai Motor Group China